Donna, Calvin and Ralph?

Several minutes into the opening number of the Ruff Ryders — Cash Money concert in Albany, N.Y., in March 2000, rapper Eve — the only female member of the tour — glanced into the audience and noticed that a few thousand girls were dressed just like her. Dubbed the first lady of hip-hop, Eve had already released one megahit solo album, appeared in a Sprite spot and modeled for Tommy Hilfiger. Still, the concert was a key moment for her. She thought, What am I doing modeling other people's clothes?

fall fashion How To Make A Statement Angela Lindvall tries on eight looks for fall  celebrity style The Next Calvin? Celebrities are fashion's new powerhouse designers  inside fashion The Business of Imagemaking TIME looks at 10 top imagemakers  timeline The Role of Race Minorities and modeling from 1960 to the present

So the former dancer from Philadelphia sketched some ideas for a clothing line based on the way she liked to dress. Three years later, Fetish — Eve's broad-ranging line of denim jumpsuits, corduroy skirts and slinky slip dresses that look like basketball jerseys — has been snapped up by stores like Bloomingdale's, Macy's and Rich's and is scheduled to hit shelves in time for fall. Sales for the first year are projected at $50 million.

Of course, Eve isn't the first pop-culture sensation to try on fashion. In the past two years, Jennifer Lopez has watched her line, JLO, take off, earning $130 million at retail in 2002, with $175 million projected for this year. And over the past few months, it seems every celebrity with a face and a following has announced a new fashion line. Eminem, Mary-Kate and Ashley Olsen, Nelly, Jay-Z and Mexican pop idol Thalia Sodi all have theirs. Beyonce Knowles, Gwen Stefani and 50 Cent are each coming out with a label. Lenny Kravitz reportedly really wants one. And this winter Pamela Anderson broke the news that she would launch a label, capitalizing on the riot of publicity surrounding her animated series, Stripperella.

If designers were the celebrities of the '90s, then celebrities are the designers of the new millennium. They make or break looks on the red carpet. They set trends in concerts and in their videos. And though they may not yet be crowned the next Calvin, Donna and Ralph, in a tough economy, with fashion Balkanizing and luxury companies like the Gucci Group showing profits down 97% in the first quarter, celebrities are poised to give the design industry's leaders a run for their money.

"This is a huge untapped market just starting to take off. It's just on fire," says Jennifer Black, a retail and apparel analyst at Wells Fargo Securities, of the urban category most celebrity lines fall into.

"The only thing I can liken it to is when companies like Nike injected technology into footwear and revolutionized the market, creating a billion-dollar industry. It's as revolutionary as that," says Marshal Cohen, chief industry analyst of the NPD Group. "In the climate that's being established, celebrities could certainly build an empire that would put them on the financial charts. Would they be similar to Calvin? No. But could they be as important? Yes."

If commercial multitasking is a business proposition too lucrative for celebrities to pass up, it may also be one their images can't survive without. As making millions on a movie becomes ho-hum by Hollywood standards and the public is continually bombarded with the couple, comeback, blockbuster or breakup of the moment, it seems almost a prerequisite for a celebrity to engage in fashion expansion just to get an audition for a spot on the pop-culture radar.

"That's what power is today: it's exposure," Cohen says. "Celebrities are about being branded. If you want to compete in the new world of entertainment for publicity, you need to market yourself. By using multimedia — music and entertainment as well as fashion — today's celebrities have three powerhouses to get them to the height of popularity. The more you put yourself out there and the more cultures you can cross over, the bigger the payout potential. And for those celebrities who have yet to figure it out, believe me, their agents are working on it."

The entertainment industry has discovered a new medium for generating a blockbuster: the wearable kind. "It's a whole new future of fashion that's driven by a lot of change and spirit and attitude and pop-culture currency, and those things are usually driven by entertainment artists," says ad executive Peter Arnell, who devised the marketing strategy for Sodi's line.

Like other vertically integrated personalities with carefully crafted images — Oprah, Martha Stewart, Madonna, Sean (P. Diddy) Combs and Russell Simmons, plus product-endorsing athletes such as Tiger Woods and Michael Jordan — celebrity designers capitalize on the fact that popular approval equals influence, whether it's a book-club recommendation, a pistachio-colored pillowcase or a velour tracksuit.

"Imagine you're a person walking through an enormous store and you see something that has a celebrity association you admire, and there's something there that might make you feel a little bit like her [J. Lo]," says Joe Denofrio, senior vice president and fashion director of Macy's East. "That's a major selling feature. If then, when you get to the dressing room, it actually fits you and looks sexy, you've got something winning on your hands."